Budget Worksession and City Council Meeting

Mayor Hakes, Councilors Costello, Kennedy, Lenz and Sivertson were all present for today's Budget Worksession and Council Meeting. Also present were Mike Roth and Kim Dunsmoor. City Attorney Chris Hood was present (via telephone) for the Council Meeting. Park Manager Dave Tersteeg, Assistant Manager Amber Clay and Fire Chief Ben Silence presented budget overviews to the Council.

Budget Worksession

Council reviewed Expenditures and Revenues for several departments in the General Fund including Council, City Clerk, Elections, Financial Administration, City Attorney, Planning & Zoning, Government Buildings, Law Enforcement, Fire, Medical Services, Animal Control, Highways Streets & Roads, Recreation, Swimming Pool, Boat Harbor, and City Parks.

Council must set the maximum levy for the City before September 14 and will do so at their next regularly scheduled Council Meeting on September 8, 2010. A final budget work session will be held just prior to that meeting. Setting the budget for 2011 is particularly challenging this year due to the uncertainty of Local Government Aid to cities and the pending contract negotiations with city employees.

City Council Meeting

Open Forum
No member of the public opted to address the Council during the Open Forum.

Consent Agenda
The Consent Agenda, including Meeting Minutes from both 7/28 and 8/11, was approved with no changes.

Harbor Park Flagpole Request
Gene Erickson addressed the Council with an offer to pay for a memorial flag pole in Harbor Park. This idea was born out of a group of friends exploring ways to remember their friend and local business owner, Dick Joynes. Erickson and friends have collected $1300 for a flag pole and memorial plaque to include the name of Joynes; the plaque would be large enough to memorialize others as a way to raise funds for the Park.

Because Harbor Park is part of a Conservation Easement and was funded in part by a DNR Natural Scenic Grant it is unknown whether or not a flagpole would be allowed. Council unanimously passed a motion for Mike Roth to contact the DNR to see if such a memorial would be allowed. Councilor Sivertson reminded the Council that there was an extensive public process that went into the design of Harbor Park that would also need to be considered carefully.

Mayor Hakes suggested (2) possible alternatives to Erickson for the memorial flagpole including Compass Park and the Coast Guard Station. Erickson ruled out the Coast Guard Station, but said Compass Park might be an acceptable alternative to Harbor Park.

All-Hazard Mitigation Plan Resolution of Adoption
Council adopted the 2010 Update of the Cook County All Hazard Mitigation Plan. Jim Wiinanen was present to answer questions. Wiinanen notified Council that there will be Workshop in November 2010 for elected officials to understand their roles in emergency situations.

EECBG Project Committee
Council passed a motion for Tim Kennedy and Mike Roth to represent the City and work with Cook County Local Energy Project, the County and other community stakeholders in working to develop an energy efficiency and renewable energy plan for Cook County and the City of Grand Marais. George Wilkes of CCLEP was present to answer questions about the grant and also to introduce Don Grant as the Energy Plan Coordinator.

Quick Variance Resolution
Council voted unanimously to deny the request for a variance to reduce the side yard setback from 10 to 5 feet for an addition to property owned by Dan and Linda Quick. Council findings were based on the recent MN Supreme Court ruling in the case of Krummenacher v. City of Minnetonka which tightly restricts the reasonable use of the "undue hardship" legal standard for granting or denying variance requests. Landowners seeking a variance must now show that the property cannot be put to any reasonable use without the variance. Council expressed their regrets in not being able to grant the variance.

MMUA 2010-11 Safety Management Program Contract
Council voted unanimously to renew the Safety Management Program contract with Minnesota Municipal Utilities Association (MMUA). The City and MMUA have been successful in working together to develop a safety program that is both effective and affordable.

Economic Development Authority/Superior National Golf Course
Council discussed the Economic Development Authority's (EDA) recent recommendations regarding Superior National Golf Course to the County Board. The EDA's proposal includes management change at Superior National from the EDA to a non-profit organization, ownership change from the EDA to the County, $1,569,000 in One Percent Sales Tax funding, bond payment of $467,000 by the County and an additional $100,000/year to the County General Fund.

Hakes and Roth reported that at the August 24 County Budget Hearings, the EDA requested a supplementary levy of $119,470 from the County to enable the EDA to pay the general obligation bond debt incurred for the development of Cedar Grove Business Park.

(Background: Hakes and Roth attended the July 13 EDA Board Meeting to communicate the City's position to the EDA Board regarding the $1.6 million bond debt on the Cedar Grove Business Park. Representing the City of Grand Marais, Hakes expressed grave concern over the Cedar Grove Business Park debt and requested that the EDA Board include the bond payment in their budget and consider it in their levy request. Hakes requested the EDA resolve their existing debt obligation before creating any new obligations or debt.)

Council & Staff Reports
Kay Costell0 reported that the Library is in the process of reviewing architectural drawings for a proposed library expansion to be paid for with One Percent Sales Tax funds.
Bill Lenz requested Council review the existing lease agreement with East Bay Suites for (5) parking spaces for consistency with the terms of other leases, including Stone Harbor Wilderness. Council agreed lease agreements should be fair and equitable and authorized Mike Roth to discuss with EBS Manager Andrew Warren.
Mike Roth reported on the Coalition of Greater MN Cities Conference in Winona MN. Highlights of the conference included Candidate Forums for Governor and State Auditor.
Sue Hakes updated the Council on the progress being made by the Community Center Steering Committee. The Committee is interviewing potential Construction Managers for the proposed project to be funded by One Percent Sales Tax funding.

Mark Your Calendars
Thurs, August 26 at 4 pm, Joint City/County/School/Tribal Council Meeting at City hall
Wed, September 8 at 3:30 pm, Budget Worksession
Wed, September 8 at 4:30 pm, City Council Meeting
Wed, September 29 at 4:30 pm, City Council Meeting